Insurance Awareness - Life Insurance - LIC
Which of the following statements about the 'Renewable Term Insurance' policy is correct?
Which of the following statements about the 'Renewable Term Insurance' policy is correct?
medium Q7 of 15
Step-by-Step Solution
Step 1: Understand renewable term insurance
Renewable term insurance allows policy renewal after expiry without fresh medical tests, though premiums may increase.Step 2: Analyze options
Renewal requires a new policyholder to be nominated. is incorrect as nomination remains unchanged unless updated. Renewal is not allowed under any circumstances. is false because renewal is allowed. Renewal automatically increases the sum assured. is incorrect as sum assured usually remains the same unless changed by rider or new policy.Final Answer:
The policy can be renewed without fresh medical examination after the term expires. → Option BQuick Check:
Renewable term policies provide this flexibility, confirming The policy can be renewed without fresh medical examination after the term expires..
Quick Trick: Renewable term = no medical exam on renewal.
Common Mistakes:
MISTAKES- Assuming renewal always requires medical tests or changes in sum assured.
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